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lawyer [7]
2 years ago
5

Suppose that when the price per ream of recycled printer paper rises from​ $4 to​ $4.50, the quantity demanded falls from 800 to

600 reams per day. Using the midpoint​ formula, what is the price elasticity of demand​ (in absolute​ value) over this​ range? A. 0.003 B. 0.41 C. 2.43 D. 4
Business
1 answer:
Delvig [45]2 years ago
5 0

Answer:

Option (c) is correct.

Explanation:

Initial quantity demanded = 800

New quantity demanded = 600

Initial price = $4

New price = $4.50

Using the midpoint​ formula,

For price:

Average price:

= (Initial price + New price) ÷ 2

= ($4 + $4.50) ÷ 2

= $4.25

Change in price = New price - Initial price

                           = $4.50 - $4

                           = $0.50

For Quantity demanded:

Average quantity demanded:

= (Initial Quantity demanded + New Quantity demanded) ÷ 2

= (800 + 600) ÷ 2

= 700

Change in quantity demanded:

= New Quantity demanded + Initial Quantity demanded

= 600 - 800

= -200

Price elasticity of demand:

=\frac{\frac{Change\ in\ quantity\ demanded}{Average\ quantity\ demanded} }{\frac{Change\ in\ price}{Average\ price}}

=\frac{\frac{(-200)}{700} }{\frac{0.50}{4.25}}

= (- 0.29) ÷ 0.12

= -2.43

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During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366
soldier1979 [14.2K]

Answer:

Balance sheet

Inventory - Understatement by $11,600

Owners equity - Understatement by $11,600

Income statement

Cost of goods sold - Overstatement by $11,600

Net income - Understatement by $11,600

Explanation:

The movement in an inventory account which is the difference between the opening and ending balances is a function of the purchases and the sales during the period.

This is captured in the equation below

Opening balance + purchases - cost of goods sold = ending balance

Hence an understatement of the ending balance would result in an overstatement of the cost of goods sold thus an understatement of the net income (and owner's equity).

The understatement in closing inventory balance is

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3 0
3 years ago
.In 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value
cricket20 [7]

Answer:

The question is not complete,find below complete questions:

If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?

The bond is worth $50.50 in the year 2027

The annual rate of return is 7.07%

Explanation:

The future value of the bond is given by the below formula:

FV=PV*(1+r)^N

where PV  is the present of the bond of $50

r is the rate of return of 0.10 percent=0.001

N is the duration of the bond investment of 10 years

FV=50*(1+0.001 )^10

FV=$50.50

However for the face of the bond to double i.e to $100, the rate of return can be computed thus:

r=(FV/PV)^(1/N)-1

where FV=$100 (double of $50)

FV=$50.50(current value in 2027)

N=10

r=($100/$50.50)^(1/10)-1

r=0.070707543

r=7.07%

5 0
3 years ago
What is a debit adjustment on a credit card?
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3 0
2 years ago
Based on the introduction and the job description, which qualities will Sarah need to look for when considering candidates to fi
dusya [7]

Answer:

life experiences

Explanation:

high school diploma, college degrees, employment history.

4 0
3 years ago
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of
Scilla [17]

Answer:

$750

Explanation:

Calculation for What was the amount of the credit to depreciation expense on the 2020 consolidation worksheet

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2020 Credit to depreciation expense=$5,000/5 years*9/12

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Therefore the amount of the credit to depreciation expense on the 2020 consolidation worksheet is $750

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